A guided tour of Sanlam's controversial Income Study

The Sanlam (previously Principal) Income Study, prompted Invesco Perpetual to defend Neil Woodford's track record. However, there was plenty else to chew as we take you through the key moves in the Study's White, Grey and Black lists.

A guided tour of Sanlam's controversial Income Study

Unicorn UK Income has been bumped up onto the White List this year with its managers, Citywire AA-rated John McClure and A-rated Christopher Hutchinson, praised for standing out from the equity income crowd with a larger than average proportion of smaller companies and an attractive level of income.

The fund returned a net income of £20.40 on an £100 investment over five years, and ranks top of the list in the Citywire UK Equity Income sector for total returns over three and five years.

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Another new kid on the block, or rather the White List, theRathbone Blue Chip Income & Growth fundreceived a ‘hold’ recommendation having returned 17.1% over five years versus the FTSE All Share’s 13.2%.

The study gave credit to managers, Citywire A-rated Julian Chillingworth and AA-rated Alan Dobbie, for their use of a broad number of assets for capital growth and income.

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Shades of Grey

Invesco Perpetual High Income

The most high profile name on the Grey List, Neil Woodford’s demotion from the White List has grabbed all the headlines.

The star manager’s Invesco Perpetual High Income fund has dropped to the Grey List with Sanlam giving the £12 billion fund a ‘sell’ recommendation arguing that its size meant it was less able to be nimble and react quickly to changing markets.

Sanlam also recommended investors ‘sell’ Woodford’s £9.2 billion Invesco Perpetual Income fund due to its large size and its focus on large cap, defensive stocks, predominantly in health care and consumer goods.

‘We would prefer managers who are able to be more pragmatic in the face of swiftly changing circumstances,’ it said.

In response Invesco Perpetual told (i)Wealth Manager(/i): 'Neil Woodford has been generating exceptional returns for his investors for over 20 years, through varying market conditions. His portfolio is intentionally focused towards dependable, undervalued companies which he is confident will generate attractive returns over the long term.'

Like the Threadneedle Monthly Income fund the Fidelity MoneyBuilder Dividend fund beat the FTSE All Share and FTSE 350 Higher Yield over five years, returning a net income £20.80 on a £100 investment over the same period.

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Also moving up was the Liontrust Income fund which was previously on the Black List.

Citywire A-rated managers James Inglis-Jones and Gary West produced a net income of £21.20 on a £100 investment over five years, but have undershot the FTSE All Share’s 13.2%, returning 8.9% over the same period.

Sanlam said: ‘With the team approaching their four year anniversary on the fund, their cash flow investment philosophy is bearing fruit. Having moved out of the Black List, we expect big things of the team here’

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The Ignis UK Equity Income fund was also promoted onto the Grey List. The fund is run by Graham Ashby and returned a net income of £17.50 on a £100 investment over five years. Over the same period the fund delivered 7.7% compared to the FTSE All Share’s 13.2%.

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Into the Black

And so to the Black List…..

Jupiter Income Trust

Anthony Nutt is soon to retire from his fourteen year tenure on the Jupiter Income Trust and Sanlam has therefore given the fund a ‘sell’ recommendation but advised investors to keep an eye on the transition of its management to Ben Whitmore.

Sanlam said the £1.9 billion fund had been a regulator on the White List for many years but has suffered weaker performance recently delivering 0.1% over five years, compared to the FTSE All Share’s 13.2%.

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Unicorn UK Income has been bumped up onto the White List this year with its managers, Citywire AA-rated John McClure and A-rated Christopher Hutchinson, praised for standing out from the equity income crowd with a larger than average proportion of smaller companies and an attractive level of income.

The fund returned a net income of £20.40 on an £100 investment over five years, and ranks top of the list in the Citywire UK Equity Income sector for total returns over three and five years.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Unicorn UK Income has been bumped up onto the White List this year with its managers, Citywire AA-rated John McClure and A-rated Christopher Hutchinson, praised for standing out from the equity income crowd with a larger than average proportion of smaller companies and an attractive level of income.

The fund returned a net income of £20.40 on an £100 investment over five years, and ranks top of the list in the Citywire UK Equity Income sector for total returns over three and five years.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Leave a comment!

Another new kid on the block, or rather the White List, theRathbone Blue Chip Income & Growth fundreceived a ‘hold’ recommendation having returned 17.1% over five years versus the FTSE All Share’s 13.2%.

The study gave credit to managers, Citywire A-rated Julian Chillingworth and AA-rated Alan Dobbie, for their use of a broad number of assets for capital growth and income.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Leave a comment!

Shades of Grey

Invesco Perpetual High Income

The most high profile name on the Grey List, Neil Woodford’s demotion from the White List has grabbed all the headlines.

The star manager’s Invesco Perpetual High Income fund has dropped to the Grey List with Sanlam giving the £12 billion fund a ‘sell’ recommendation arguing that its size meant it was less able to be nimble and react quickly to changing markets.

Sanlam also recommended investors ‘sell’ Woodford’s £9.2 billion Invesco Perpetual Income fund due to its large size and its focus on large cap, defensive stocks, predominantly in health care and consumer goods.

‘We would prefer managers who are able to be more pragmatic in the face of swiftly changing circumstances,’ it said.

In response Invesco Perpetual told (i)Wealth Manager(/i): 'Neil Woodford has been generating exceptional returns for his investors for over 20 years, through varying market conditions. His portfolio is intentionally focused towards dependable, undervalued companies which he is confident will generate attractive returns over the long term.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Like the Threadneedle Monthly Income fund the Fidelity MoneyBuilder Dividend fund beat the FTSE All Share and FTSE 350 Higher Yield over five years, returning a net income £20.80 on a £100 investment over the same period.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Leave a comment!

Also moving up was the Liontrust Income fund which was previously on the Black List.

Citywire A-rated managers James Inglis-Jones and Gary West produced a net income of £21.20 on a £100 investment over five years, but have undershot the FTSE All Share’s 13.2%, returning 8.9% over the same period.

Sanlam said: ‘With the team approaching their four year anniversary on the fund, their cash flow investment philosophy is bearing fruit. Having moved out of the Black List, we expect big things of the team here’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

The Ignis UK Equity Income fund was also promoted onto the Grey List. The fund is run by Graham Ashby and returned a net income of £17.50 on a £100 investment over five years. Over the same period the fund delivered 7.7% compared to the FTSE All Share’s 13.2%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Into the Black

And so to the Black List…..

Jupiter Income Trust

Anthony Nutt is soon to retire from his fourteen year tenure on the Jupiter Income Trust and Sanlam has therefore given the fund a ‘sell’ recommendation but advised investors to keep an eye on the transition of its management to Ben Whitmore.

Sanlam said the £1.9 billion fund had been a regulator on the White List for many years but has suffered weaker performance recently delivering 0.1% over five years, compared to the FTSE All Share’s 13.2%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

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